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2009 (7) TMI 69 - HC - Income TaxCo-operative Bank – Deduction u/s 80P – Unexplained Income - The assessee invested certain sums, out of the surplus funds available out of the working capital including voluntary reserves, in various government securities and with the banks. Such investments are integral part of normal banking activities and, therefore, the assessee claimed deduction in respect of such income under Section 80P(2)(a)(i) of the Income Tax Act, 1961 – held that interest and dividend income derived out of investment are entitled to deduction - The assessing officer added Rs.2,86,260/- as unexplained cash credit under Section 68 of the said Act. - Such liability in suspense account was shown by the assessee in the normal course of its business as the amount could not be properly identified - the amount could not be treated as unexplained cash credit inasmuch as in the daily business of the banking transactions there are number of entries, which could not be properly tallied due to various mistakes, and, therefore, was shown in the suspense account
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